Imported ferrous scrap trades in Bangladesh and Pakistan were tepid amid ongoing Eid holidays. Pakistani buyers are expected to return to the market on Thursday. Indian importers continued enquiring for HMS scrap but were away from shredded trades.
Enquiries for imported ferrous scrap have been increasing every day this week on rising transactions of semi-finished steel in the domestic market.
But, buyers are willing to wait for prices to drop as end-user demand in the construction industry is still slow. Demand could take another month to revive.
Major importing states like Gujarat and Maharashtra continued to register new COVID-19 cases subduing production activity.
The daily Davis Index for containerised shredded settled at $275/mt cfr Nhava Sheva, unchanged. Shredded in containers was offered at $280-285/mt cfr Nhava Sheva but there were no buyers in the market. Bids for shredded were at $270/mt cfr Nhava Sheva. A few mills with limited inventories in hand have resumed enquiries and thin trades took place. Demand for semi-finished steel like billets increased in the both domestic and exports markets.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled flat at $255/mt cfr Nhava Sheva. The daily index for US-origin HMS 1&2 (80:20) was at $253/mt cfr Nhava Sheva, also unchanged. Trades for HMS 1&2 (80:20) were reported in the range of $250-255/mt cfr Nhava Sheva depending on origins.
Wednesday marked the last day of Eid holidays and ferrous scrap importers are likely to be in the market on Thursday with banks resuming work.
The Davis Index for US-origin containerized shredded settled at $278/mt cfr Port Qasim, down by $1/mt. No trades were reported. Offers from the UK and European suppliers rose to $280-285/mt cfr Qasim as they anticipate demand to improve in the near term.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $258/mt cfr Qasim, down by $1/mt from Monday. South African suppliers resumed offers to Pakistan and India. HMS 1&2 (80:20) traded at $250-255/mt cfr Qasim, up by $5/mt from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Qasim, unchanged from Tuesday. Offers of $260/mt cfr Qasim was countered with bids at $250/mt cfr Qasim.
Mill activities are likely to stay slow till Eid holidays end on May 31. Only leading steelmakers resumed operations after the government allowed resumption of steel production. Most medium and small-scale furnaces are still shut as labours have travelled to their hometowns for Eid celebrations. Buyers were unable to open new LCs due to bank holiday and thus stayed away from bookings.
The Davis Index for containerised shredded settled at $283/mt cfr Chattogram, unchanged from Tuesday. Offers for shredded were in the range of $285-290/mt with no bids in the market.
The index for Latin America-origin HMS 1&2 (80:20) inched up by $2/mt to $255/mt cfr Chattogram from Tuesday. Offers from Brazilian traders rose due to increased enquiries by Indian mills.
The index for US-origin HMS 1&2 (80:20) settled unchanged at $263/mt cfr Chattogram.
Imported ferrous scrap prices in Taiwan inched up due to higher offers. But limited trades were reported amid ongoing rainy season and weak finished steel sales. The daily index for containerised US-origin HMS 1&2 (80:20) rose by $3/mt to $226/mt cfr Taiwan.
A few steel mills bid for South American HMS 1&2 (80:20) at $220/mt cfr Taiwan as offers from the US were at $230-235/mt driven by an increase in Turkish buying prices. The index for HMS1&2 (80:20) in Tukey increased by around $6/mt to $251.85/mt cfr on Tuesday from last Wednesday. Taiwanese steel mills refrained from buying from the US.
Suppliers offered US-origin HMS 1&2 (80:20) at $230-$235/mt cfr Taiwan.
Local rebar prices were flat as steel manufacturer Feng Hsin offers for Grade40 rebars remain at NT$14,000/mt without volume discount. Other steel firms offered rebar at NT$13,800/mt. Pig iron from Japan was offered at $300/mt cfr Taiwan with no trades heard.